EUR/USD retreats to 1.2150 as US Treasury yields rebound
- EUR/USD maintains a muted tone below 1.2180 in the Asian session.
- A revival in US Treasury yields lifts the demand for the US dollar.
- Risk-on sentiment favors the single currency ahead of the Ez data.
The little appreciative move in the US dollar keeps the EUR/USD pair gains under check in the Asian session. The pair peaked at 1.2177, albeit retreated quickly towards the session’s low of 1.2150, where it now wavers.
The US dollar index (DXY), which tracks the greenback performance against its rivals, went into downward spiral post-dismal US Nonfarm Payrolls data on Friday, which spooked the market and fueling the speculation of the continuation of the ultra-accommodative monetary policy in the US. This, in turn, pushed the US Treasury downhill, although it recovered from 1.47% to 1.58%.
The employment data echoed the narrative of the Fed officials that the economy is not overheating and downplayed the rising inflationary pressure, as there is plenty of room for economic recovery in terms of employment and stable prices.
The comments from the US Treasury Secretary Jenet Yellen provided a cushion to the falling US dollar, citing that the economic recovery is on track despite terrible job reports.
On the other hand, the Eurozone posted remarkable growth in service sector data, shown by the Eurozone PMI survey released last week. In addition to that, the retail sales rose firmly in March despite the coronavirus led lockdown.
As for now, the dynamics around the US Treasury yields will continue to influence the pair’s performance ahead of the Eurozone Sentix Investor Confidence release.
EUR/USD Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
